Thanks X-Tex Lease rates are somewhat close to singularity, with the 1 month and 6 month rates a bit higher, except they have risen, not fallen, which apparently indicates a fear of shortage of Gold and can be a precursor to fantastic rallies.
I am basically bullish on Gold and bearish on the USD .... well, bit unsure atm. Could it also be that we see this spike in Gold lease rates simply because Bernanke and Kohn eased economic fears, risk appetite returned, Gold carry trades get put on and people are confident to hold the USD?
That could drive the markets for a while despite the rate cuts, maybe even long enough till the feds hike rates while everyone else cuts? If that's the case, we could be at the beginning of a long term bull market for the USD, bear market for Gold and it could make lows beyond your wildest imagination. Probably time to increase my Yen short position anyway. Looks like the bulls are in charge again, for now anyway. See how they handle the next quarterlies as there will be more bad news, poor earnings an more write-offs. Maybe they are used to it by now, won't worry too much and think that it'll all be fixed soon anyway. I believe that there's a fair chance that we've only seen the tip of the iceberg yet and that there's far greater damage from bad credit.
Monthly chart for Gold looks absolutely terrible, bit like a gravestone doji at the top, weekly chart doesn't look good, although there was less volume in the last couple of weeks. Less volume in the up week last week due to the holidays I guess and light volume this down week. Daily chart doesn't look that great either. If it falls through $775, watch out below; some resistance at 740, but somoewhere around, probably above 680 should be the bottom if the Gold Bull is still alive.
Happy to be on the sidelines for now. My charts will tell me what to do when.
